May 3, 2016 1
Forward-Looking Statements This presentation may contain forward-looking statements regarding NBT Bancorp Inc. These statements constitute forward-looking information within the definition of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from any forward-looking statements expressed in this presentation, since forward-looking information involves significant known and unknown risks, uncertainties and other factors. For a discussion of the factors that might cause such differences, please refer to NBT Bancorp s public filings with the Securities and Exchange Commission. These are available online at http://www.sec.gov. NBT Bancorp does not undertake to update any forward-looking statements made in this presentation to reflect new information, future events or otherwise. 2
Michael J. Chewens Senior Executive Vice President and Chief Financial Officer 3
Timothy L. Brenner Executive Vice President and President of Wealth Management 4
Matthew K. Durkee Executive Vice President 5
Jeffrey M. Levy Executive Vice President and President of Commercial Banking 6
F. Sheldon Prentice Executive Vice President, General Counsel and Corporate Secretary 7
Catherine M. Scarlett Executive Vice President and Chief Human Resources Officer and Chief Ethics Officer 8
Joseph R. Stagliano Executive Vice President and Chief Information Officer 9
John H. Watt Jr. Executive Vice President 10
11
2015 Financial Highlights 12
Record Performance in 2015 $76.4 Million Record Net Income 13
Net Income In Millions $80.0 $70.0 $75.1 $76.4 $60.0 $61.7 $50.0 $54.6 $40.0 $30.0 2012 2013 2014 2015 14
Record Performance in 2015 $1.72 Earnings Per Share Second Highest Ever 15
Earnings Per Share $1.76 $1.72 $1.72 $1.68 $1.69 $1.64 $1.66 $1.60 $1.62 $1.56 2012 2013 * 2014 2015 * Excludes merger-related expenses from acquisition of Alliance 16
Record Performance in 2015 Total Assets at $8.3 Billion Loans at $5.9 Billion Deposits at $6.6 Billion 17
Performance Drivers: Organic Loan Growth In Billions $4.90 $4.70 $4.50 $4.30 $4.10 $3.90 $4.02 $4.24 $4.47 $4.72 $3.70 $3.50 $3.81 2011 2012 2013 2014 2015 Loan balances shown without acquired portfolios 18
Performance Drivers: Loan Growth In Billions $6.00 $5.50 $1.16 $5.00 $1.16 $1.16 Acquired Loans $4.50 Originated Loans $4.00 $3.50 $0.26 $4.72 $4.47 $4.24 $4.02 $3.81 2011 2012 2013 2014 2015 19
2015 Diversified Loan Portfolio Home Equity 9% Residential Real Estate 20% Consumer 27% Commercial 20% Commercial Real Estate 24% 20
Stable Asset Quality 1.60% 1.20% Nonperforming Loans / Loans 1.24% 0.80% 0.40% 0.47% 0.64% 0.00% 2005 2007 2009 2011 2013 2015 Stable asset quality trends continued in 2015 2015 net charge-offs to average loans at 0.38% compared to 0.41% for 2014 Past due ratio of 0.62% as of 12/31/2015 is 7 basis points lower than 12/31/2014 21
Performance Drivers: DDA Deposit Growth Average Balances In Millions $1,900 $270 $1,700 $270 $1,500 $1,300 $1,100 $900 $3 $963 $37 $1,103 $187 $1,297 $1,400 $1,587 Acquired DDA DDA Balance $700 2011 2012 2013 2014 2015 % Growth 18.0% 30.2% 12.5% 11.2% (as compared to previous year) 22
Noninterest Income as a Percent of Revenue 32.0% 31.0% 31.2% 30.0% 29.0% 30.0% 30.2% 29.7% 28.0% 27.0% 2012 2013 2014* 2015* *Excludes gains from sale of Springstone LLC of $19.4 million in 2014 and $4.2 million in 2015 23
Strong, Sustained Financial Performance 24
Peer Group Listing Company Ticker Location Company Ticker Location Berkshire Hills Bancorp Inc. BHLB Pittsfield, MA Brookline Bancorp Inc. BRKL Boston, MA Community Bank System Inc. CBU De Witt, NY Flagstar Bancorp Inc. FBC Troy, MI NBT Bancorp Inc. NBTB Norwich, NY Northwest Bancshares, Inc. NWBI Warren, PA Old National Bancorp ONB Evansville, IN Provident Financial Services PFS Jersey City, NJ First Commonwealth Financial FCF Indiana, PA Park National Corp. PRK Newark, OH Flushing Financial Corp. FFIC Lake Success, NY First Midwest Bancorp Inc. FMBI Itasca, IL Independent Bank Corp. INDB Rockland, MA MB Financial Inc. MBFI Chicago, IL PrivateBancorp Inc. PVTB Chicago, IL S&T Bancorp Inc. STBA Indiana, PA Tompkins Financial Corporation TMP Ithaca, NY TrustCo Bank Corp NY TRST Glenville, NY 25
Components of Profitability Return on Average Assets Return on Average Tangible Equity Net Interest Margin Efficiency Ratio Nonperforming Assets to Total Assets 26
Relative Average Ranking Year Ended December 31, 2015 Ratios Relative Peer Ranking Return on Average Tangible Equity 5 Return on Average Assets 9 Net Interest Margin 7 Efficiency Ratio 9 Nonperforming Assets to Total Assets 8 NBTB Average Ranking 7.6 27
Peer Group Relative Average Ranking Year Ended December 31, 2015 2 2.4 4 4.0 6 8 10 6.2 7.6 7.6 8.2 8.6 8.8 9.6 9.8 10.2 10.8 12 11.6 11.6 11.8 12.2 14 14.4 14.8 16 28
Peer Group Relative Average Ranking Ten-Year Average (2006 to 2015) 2 4 4.2 6 5.7 5.9 8 7.0 7.7 7.8 8.1 8.2 10 10.0 10.2 10.2 10.3 10.6 11.3 11.3 12 12.4 12.8 14 16 16.3 18 29
NBT Bancorp Stock 30
NBT Bancorp Stock Traded on NASDAQ Global Select Market Ticker Symbol: NBTB Institutional Ownership: 48% Average Daily Volume: 112,000 31
Relative Performance One Year For the Period from 12/31/2014 to 12/31/2015 10% 8% 6% 1 Year % Increase: NASDAQ 6.48% NBTB 9.73% 4% 2% 0% -2% -4% -6% NASDAQ Financial Index NBTB 32
Relative Performance Ten Years For the Period from 12/31/2005 to 12/31/2015 95% 70% 45% 20% -5% -30% NASDAQ Financial Index NBTB 33
Annualized Total Shareholder Return One Year For the Period From 12/31/2014 to 12/31/2015 34 46.92% 22.94% 18.51% 15.42% 12.18% 11.72% 11.15% 10.21% 9.89% 9.73% 8.26% 6.74% 5.99% 4.81% 1.43% 0.49% -5.72% -11.89% TRST 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% FBC PVTB BRKL PFS BHLB NWBI INDB FFIC FMBI NBTB CBU PRK STBA TMP FCF MBFI ONB
Annualized Total Shareholder Return Ten Years For the Period From 12/31/2005 to 12/31/2015 35 9.96% 8.41% 7.83% 7.71% 7.05% 6.32% 4.36% 4.06% 2.55% 1.84% 1.45% 1.31% 0.51% -0.07% -1.03% -2.21% -33.34% -4.52% FBC 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% -35% -40% CBU NWBI INDB TMP FFIC NBTB PFS PRK BRKL PVTB STBA BHLB MBFI FCF ONB TRST FMBI
Remarkable 20-Year Run of Consistency Total Return Last 20 Years Source: Griffin Financial Group LLC 36
0.11% 0.00% Peer Group Dividend Yield As of December 31, 2015 Source: SNL Financial Median is 3.26% 37 4.57% 4.41% 4.38% 3.83% 3.59% 3.40% 3.29% 3.29% 3.27% 3.26% 3.13% 2.71% 2.65% 2.34% 2.32% 2.10% PVTB FBC MBFI FMBI INDB STBA 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% TRST NWBI PRK ONB PFS NBTB CBU TMP BRKL FCF FFIC BHLB
Dividend Yield: NBT vs. Peer Median 5.00% 4.75% 4.50% 4.25% 4.00% 3.75% 3.50% 3.25% 3.00% 2.75% 2.50% 2.25% 2.00% 2011 2012 2013 2014 2015 NBTB Peer Median 38
Dividend Payout Ratio 100% 80% 60% 46% 52% 44% 52% 48% 47% 49% 55% 49% 50% 40% 20% 0% NBTB 39
Business Updates 40
New England Strategy 41
New England Strategy State Year Opened Loans VT 2009 $412 MA 2011 $90 NH 2012 $310 ME 2015 $43 As of December 31, 2015 Dollars in millions $855 Almost $1 Billion in Loans Wealth Assets Under Administration of $217 Million Proven Growth Strategy Attractive Market Demographics 42
New England Strategy We view NBT s successful New England efforts as a key differentiator of the franchise vs. other Upstate NY banks still struggling with the competitive slow growth environment of its marketplace. 43
New Website Launch 44
New NBT Bank Website 45
First Quarter 2016 Highlights 46
First Quarter 2016 Highlights Earnings Per Share of $0.43 Net Income of $18.9 Million Annualized Loan Growth of 5.8% Average Demand Deposits Up 11.3% from First Quarter 2015 Positive Asset Quality Trends Continue 47
48